What are the 16-point suggestions of the Brokers Association for the policies and programs of the Securities Board?

Kathmandu. Stock Brokers Association Nepal, an umbrella organization of stock brokers, has been formed by the Securities Board of Nepal for the upcoming fiscal year 2082. Various 16-point suggestions have been given to the policy and program of 83. In which suggestions have been made for full implementation of margin trading, from easy policy to operation of auction market.

The Securities Board had sought suggestions from the concerned bodies for the fiscal year. Accordingly, the association has submitted its suggestions.

Suggestions

• To facilitate the delivery of investment management and investment consultancy services by expanding the scope of securities brokers to facilitate the entry of investors into the secondary market of securities and to increase credibility in the securities market by providing various types of services needed by the investors through a one-door system, and to facilitate the implementation of margin trading by removing policy and practical hurdles in full implementation. ।
• Apply the concept of an official representative or subbroker to facilitate the public’s access to the secondary market of securities and to expand the market to the national and international arena.
• To establish the identity of a new investor through electronic media (online and video KYC) without direct physical presence and open demat and transaction account, provide my share and online trading services.
• Provide transactions of derivatives and rights such as intraday trading, securities lending and borrowing (SLB), equity-based futures and options as soon as possible.
• In order to further accelerate the second market transaction of bonds, arrangements should be made to get the payment of sale by calculating the interest received by the seller in the transaction of institutional bonds like government savings certificates transactions.
• Legal provision allowing investors to give power of attorney to securities brokers.
• Launch the auction market as soon as possible to offset the financial loss to investors due to unnecessary closeouts in sales.
• Provision of financial action as investors will be affected without any reason while suspending the transactions of listed institutions or businessmen in case there is no compliance with any rules or procedures by listed institutions and securities brokers.

Nepse TAG_OPEN_li_33 and CDSC should be given clear instructions to implement the RAFSAF Fund as soon as possible and operate the system of suspending the transactions of broker businessmen if the RAFSAF is not done on time.

• To make the framework of quarterly financial statements more detailed, including all information and data that may be necessary to make investment decisions and may affect the price of securities, and to ensure that such details are made public within the stipulated time.
• Investors who do not knowingly hand over securities for the purchase and sale of securities within time should be blacklisted and legal action will be taken against them.
• To monitor unwanted activities such as internal transactions, circular transactions, pumps and dumps, such traders, shareholders, directors, employees of such businesses, list the shareholders, directors, employees, all of them, family members, relatives, all of them and make arrangements to appear in the transaction system used by all the businessmen.

In order to make TAG_OPEN_li_29 the second market more dynamic and dynamic, non-resident Nepali and foreign institutional investors should be involved in the second market transaction and the process of taking sales and profits should be facilitated by coordinating with the Nepal Rastra Bank to facilitate the cumbersome process.

TAG_OPEN_li_28 A separate organization should be established under the Board to conduct investment awareness programs and training, to provide necessary orientation and career development training to the employees of market related agencies, to certify investment analysts and market experts, to conduct research on new tools and trading methods, and to study and research about the capital market and economy.

TAG_OPEN_li_27 To regulate and supervise the social media pages or forms that are directly related to the market to control and discourage unwanted activities taking place in the market, only analysts and experts certified by the Securities Board of Nepal or NEPSE can publicly press the price projection of securities and the overall market.

• The Investor Protection Fund under the Office of the Registrar of Companies should be brought under the securities board and operated effectively in accordance with the spirit of the fund, if there are any legal hurdles in it, initiatives should be taken through the board for modification.
• To make the most transparent and trusted securities broker business more transparent and to strengthen credibility through the participation of the general investors, to open broker proprietary trade by keeping certain reporting provisions and make legal provisions allowing broker business companies to issue shares to the general public.